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Private investors, who will now be able to trade a broad spectrum of funds without a front-end load, are the main target group for the new segment.
The funds will be traded exclusively on the floor of the Frankfurt Stock Exchange, the market leader in private investor trading. Exchange trading with mutual funds opens up an additional distribution channel for fund issuers and a new business area for intermediaries on the Frankfurt Stock Exchange.
Deutsche Börse will define minimum quote sizes and maximum spreads, designed to guarantee the highest possible price quality. Trading will take place from 9am to 8pm. Intermediaries will ensure continuous quoting for the funds in real time, thus guaranteeing liquid trading at the lowest transaction costs, and the greatest possible transparency for investors.
Deutsche Börse has been active in exchange trading of funds since the launch of the XTF segment for exchange-traded index funds in April 2000.
Since then it has developed into Europe’s leading marketplace for Exchange Traded Funds (ETFs). 117 index funds are currently traded in XTF, and assets under management reached a new record of €32.3 billion at the end of March 2006. Trading volume was €6.2 billion in March 2006.
Deutsche Börse has continuously expanded its offering for private investors in recent years and is the reference market. The Frankfurt Stock Exchange provides a broad range of products for private investors: 7,000 German and international equities, over 30,000 certificates and reverse convertibles, more than 40,000 warrants, 8,600 German and foreign government and corporate bonds, and soon also 2,700 actively and passively-managed funds (including ETF). As a neutral exchange operator, the Frankfurt Stock Exchange thus provides private investors with the widest selection of all German and European stock exchanges at the best prices.
